Three-point plan needed to build EV demand

October 19, 2016

The EU is failing as a single market because it cannot provide international standards for the development of electric vehicles (EVs), a new report claims.

Lobby group Transport & Environment says different charging standards, incentives and legislation are disrupting growth of EVs and limiting it to just a few countries, such as the Netherlands and Norway.

The organisation claims the whole EU market is ready for growth and requires three key areas of support to generate greater demand.

The report makes three recommendation including a French-style bonus-malus form of taxation for cars in all EU countries, where the higher purchase costs of EVs are offset by lower taxes. It also calls for the acceleration of EU plans for charging points to be standardised.

The report also recommends that governments and local authorities exclude diesel cars from city centres or require them to pay if they breach set emissions limits, while plug-in vehicles would have free access and benefits such as discounted parking.

In many cases, EV sales growth is linked to government incentives that reduce the purchase cost of EVs. Demand is disrupted when schemes are halted, such as in the Netherlands, or when demand meets annual budget limits, such as in Spain.